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Purveyor

(29,876 posts)
Fri Jul 19, 2013, 10:57 AM Jul 2013

Fed Ponders Part-Time Shift as Obamacare Role Questioned

By Alex Nussbaum and Jeanna Smialek - Jul 19, 2013

Bailey Brewer, 28, is a writer with a graduate degree in journalism. She’s been employed since the start of the year as a temporary office worker, unable to find a full-time job.

“The part-time thing, I’m really grateful for the work, but it’s also really frustrating because nothing is renewable,” Brewer said. “I want to feel settled in Los Angeles.”

Brewer isn’t alone. The number of workers holding full-time positions fell in the U.S. in June as part-timers hit a record after rising for three straight months, according to the Bureau of Labor Statistics household data. Part-time employment has been outpacing full-time job growth since 2008. Economists cite still-tough economic conditions as the root cause, with some saying President Barack Obama’s 2010 health-care law exacerbates the trend.

U.S. Federal Reserve Chairman Ben Bernanke told a House committee July 17 that policy makers consider underemployment, which includes part-time workers who want full-time jobs, one of the gauges of labor-market strength.

“As we look at the unemployment rate and try to determine what it means for the labor market, we look at these other indicators as well,” Bernanke said in response to a question from Marlin Stutzman, a Republican representative from Indiana, during the Fed chairman’s semiannual testimony to Congress.

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http://www.bloomberg.com/news/2013-07-19/fed-ponders-part-time-shift-as-obamacare-role-questioned.html

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Fed Ponders Part-Time Shift as Obamacare Role Questioned (Original Post) Purveyor Jul 2013 OP
Interesting number in one of the enlightenment Jul 2013 #1

enlightenment

(8,830 posts)
1. Interesting number in one of the
Fri Jul 19, 2013, 11:30 AM
Jul 2013

reports the article cites - the Business Outlook survey.

The article uses the report to support the idea that businesses are not citing the ACA as a reason for shifting to part-time labor or using other methods to avoid paying for health care - and indeed it appears that the majority of the fewer than 100 companies surveyed do not see the ACA as a reason to change their practices.

The percentages that the article cites are a little misleading, however. They say:

Of about 75 manufacturers surveyed by the Philadelphia Fed, 5.6 percent said they have shifted from full-time to more part-time workers to avoid health-care rules and 2.8 percent have refrained from hiring or fired workers, based on results released July 18. Over the next year, 8.3 percent plan to have more part-time workers and 5.6 percent plan to fire or refrain from hiring workers because of the law.


True - that's what the percentages say - but what they omitted was:

9.7% of those surveyed had fewer than 50 employees

Of the remaining firms, 13.9% indicated they would drop or cut back on health insurance for their employees

Currently:
70.8% report they have made minimal or no change in response to the ACA
11.1% have started outsourcing more work
9.7% have started doing "other" (as opposed to not changing anything in response to the ACA)
8.3% declined to respond - which given the options of "little or nothing" and "other" suggests nothing good . . .

In the next year:
54.2% plan on making minimal or no change
18.1% plan on outsourcing more work
12.5% plan on doing "other"
9.7% declined to respond

Those figures sort of take the happy glow off the low percentage of companies who have shifted or plan to shift to part-time labor.
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